In an effort to increase its presence in the electric mobility space, TVS Motor Company said on October 21st that it has decided to set up a new subsidiary for the electric vehicle segment.

The board has approved the incorporation of a wholly-owned subsidiary to undertake its electric mobility business, the company said in statement. TVS is also planning to come up with an investment of around Rs. 10 billion (US$ 134 million) in the EV space, said K.N. Radhakrishnan, director and chief executive officer, TVS Motor Company. At present, TVS has only one product in the category, iQube. TVS iQube, launched in January 2020, is currently available in 33 cities across the country.

Radhakrishnan said that the creation of the new subsidiary will help the company in expanding its presence in the global market under this category. "Very shortly we will see new EV products coming in. This subsidiary will give us the flexibility and freedom to scale up the business," he said. In July, TVS's rival Bajaj Auto's board too had announced the incorporation of a wholly-owned subsidiary to expand its presence in electric and hybrid vehicle space.

The move to create a fresh subsidiary comes close to the heels of the company entering into a strategic partnership with Tata Power for the implementation of electric vehicle charging infrastructure (EVCI) across the country. the two companies, apart from the implementation of EVCI, solar power technology will be deployed at TVS Motors select locations. The partnership aims at creating a large dedicated electric two-wheeler charging infrastructure to accelerate electric mobility in India.

In September, TVS Motor had bought 80% stake in EGO Movement, a Swiss e-bike company, for US$ 17.9 million. The company is planning to generate US$ 100-150 million in the next three to five years by participating in growing demand for e-bikes. For the current financial year, the company is planning a capital expenditure of around Rs. 7.5 billion, mainly in EVs and other products.